People only get limited if they do dumb things with their accounts.
scam people, have multiple accounts, verify it with VCC and get caught, fake information etc. If none of those apply to you, then no need to worry


Offshore hosting -- most people see it as hosting where you can have sites that some laws say are "illegal" such as warez linking sites (sites that don't host the warez, but link to sites like rapidshare), porn, etc.

Onshore hosting (opposite of offshore) is the complete opposite of course, it is usually places where only legal sites are allowed.


Hope that helps!